FARGO, N.D. — In a significant legal victory, Dr. Matthew Friederichs was awarded nearly $290,000 in damages after a jury found Sanford Health guilty of sending a deceptive letter in his name to patients without his authorization. This judgment came after a nearly two-week trial in U.S. District Court, culminating late Friday afternoon.
Dr. Friederichs, an orthopedic surgeon, had been affiliated with Sanford for nearly 20 years before deciding to resign in November 2021. His decision to leave and start his own practice, OrthoDakota, in Fargo was personal and professional. However, the transition sparked controversy when Sanford Health mailed out more than 2,300 letters in early 2022 purportedly from Friederichs, suggesting he endorsed other Sanford doctors and persuading patients to remain with the hospital.
The contentious letter, which Friederichs neither wrote nor authorized, led to accusations against Sanford of false representation and identity theft. It even prompted claims of violating both state and federal laws, specifically North Dakota’s Unlawful Sales or Advertising Practices Act and the federal Lanham Act. Moreover, Friederichs contested that Sanford had shorted his pay during his final 90 days of employment.
During the legal proceedings, Brandon Wheeler and Daniel Kelly, attorneys from the Minneapolis-based firm Felhaber Larson representing Friederichs, argued that the unauthorized letter not only misrepresented Friederichs’s intentions but also breached the trust of his patients and aimed to benefit Sanford economically. They highlighted the delay and resistance Sanford exhibited in addressing the mistake, which included the eventual sending of a corrective letter more than a month later under a court order.
Testifying in court, Mike Erickson, the executive director of Sanford’s orthopedics department, admitted the letter resulted from an “internal failure” and was unintentional. According to Erickson, there was a breakdown in communication within the team, with each member assuming others had secured Friederichs’s approval.
Nevertheless, the defense, spearheaded by Shawn Raiter of Larson King, a St. Paul-based law firm, maintained that there was no proof of patients being misled to a harmful extent by the letter. Raiter pointed out that the corrective letter was not only prompt but comprehensive, helping resolve any confusion and even aiding patients in contacting Dr. Friederichs at his new practice.
In spite of this, the 12-member jury sided largely with Friederichs, rejecting only the breach of contract claim. The jury awarded him $50,000 in compensatory damages and a substantial $240,000 in punitive damages. The latter underscored the severity of Sanford Health’s actions, which the jury deemed motivated by malice, fraud, or oppression.
After the trial, Sanford Health expressed respect for the jury’s decision but indicated disagreement with the outcome. The organization emphasized its commitment to continuing providing high-quality healthcare services.
Dr. Friederichs, commenting on his legal battle, said it was less about the monetary compensation and more about upholding ethical standards and patient trust. He emphasized that the lawsuit was a stand against corporate malpractices affecting both patient care and professional integrity. Following the lawsuit, changes were made to Sanford’s policy on communications regarding departing physicians, ensuring no future letters would misrepresent the circumstances or sentiments of the doctors involved.
As a result of the case, which Friederichs considered a victory for both his patients and broader community values, Sanford has adjusted its policies to prevent similar issues. Meanwhile, Friederichs expressed relief and satisfaction, noting the community-wide impact of the legal outcome and his role in advocating for transparency and ethics in patient communications.